Hidden Value in Old Annuities


Get a professional review before exchanging that old annuity!

Many retirees may have older annuities. These often appear to be stale and in need of updating. However, there may be real value hidden in these dusty policies.

A closer look may reveal features that make the annuity worth keeping. Below are 3 examples of key benefits to watch for:

  • The policy is likely 100% available without surrender charge. This means the owner could access the cash value of the policy without a penalty from the insurance company.
  • The minimum guaranteed interest rate may be significantly higher than the rates currently offered. Some older policies offer minimum rates of 3 and 4%. This can be very attractive in today’s low interest rate world. For a risk-averse investor, their older, fixed rate policy may fit perfectly.
  • The existing policy may have added valuable riders that cannot be replaced. Examples include increased death benefit riders or income riders. Such added benefits would be lost should the policy be surrendered or exchanged.

Next, depending on the needs of the individual, trading in one of these older policies may make sense. For example, if there is sufficient access to cash in bank accounts, or if the investor’s risk tolerance and long-term goals are such that a fixed rate guaranty is no longer important.

Above all, a complete review is important to consider the pros and cons if considering such an exchange. Getting professional advice can help you on your way to a secure financial future.

Finally, if you or someone you know would like a review of an existing portfolio or annuity, simply click on our schedule link to book your free consultation.

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